Cars UK are calling for Insurance Companies to quote their ‘Online’ price for car insurance as a comparison when insurance renewal letters are sent.
Car Insurance is big news, with prices rising by 40 per cent in the last year according to the AA, and cash-strapped motorists struggling to meet the soaring costs of insuring their car.
Shopping around for a car insurance quote is undoubtedly the best way to make sure you get the best price possible, but for many that’s difficult, and many older drivers want to stay loyal to ‘their’ insurance company. Sadly, the insurance companies don’t reciprocate that loyalty.
We asked everyone in the office to dig out their car insurance renewal and then go to their car insurance providers’ website and get a quote as a new customer. The results were startling
The average difference was almost 40% cheaper for a new customer than an existing one.
Two of the worst examples were a Porsche Cayenne insured with Privilege which fell from £1362 renewal to £624 with Privilege online (and just £500 with Esure) and a Mercedes A Class which fell from £720 with Zurich to £390 with Zurich online (and just £218 with Chaucer Direct).
The best we managed was a Fiesta with Tesco which fell from £783 to £716, a saving of just 8.5% (although it was just £380 with Admiral).
Using Compare the Market the average saving was over 50% compared to renewal
The only way to stop this clear profiteering at the expense of existing customers is by transparency.
We’re calling for car insurers to publish the equivalent online price for a new policy on all car insurance renewal notices. That way existing policy holders will be able to see how much they are being overcharged, and do something about it.
Tell us you car insurance horror stories in the comments below, or just tell us you’re with us.
You never know, we might just make a difference.